BBH: Canadian CPI and US Tariffs Weigh on Loonie Outlook
BBH's Elias Haddad expects Canada’s July CPI to keep core inflation below 2%, reinforcing an extended Bank of Canada stance, while US tariffs add downside pressure on the Canadian dollar.
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Brown Brothers Harriman strategist Elias Haddad expects Canada’s July CPI report to show core inflation remaining below 2%, according to the firm’s FX note.
That would reinforce the case for an extended Bank of Canada policy stance, keeping the Canadian dollar under pressure. BBH also flags US tariffs as an additional headwind for the loonie’s outlook.
The comments come as markets monitor Canadian inflation data and trade policy developments for signals on the BoC’s next moves.
Source: FXStreet Forex News